Discussions between Dangote Petroleum Refinery and marketers to finalize petrol pricing and supply agreements
The Independent Petroleum Marketers Association of Nigeria (IPMAN) is preparing for key discussions with Dangote Petroleum Refinery, scheduled between Tuesday and Wednesday, to finalize agreements on the pricing and distribution of petrol from the newly operational $20 billion Lekki-based refinery.
Reports on Sunday revealed that the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) had also been asked to resubmit its request for petrol supply. PETROAN is optimistic that once competition in Nigeria’s downstream oil sector kicks in fully, the cost of petrol may decrease. This is expected to happen as marketers begin sourcing fuel directly from the refinery.
IPMAN considers the meeting with Dangote an essential step toward securing stable and efficient fuel supplies. Last week, the Federal Government authorized petroleum marketers to bypass the Nigerian National Petroleum Company Limited (NNPCL) and purchase petrol directly from local refineries, including Dangote’s.
Wale Edun, the Minister of Finance and Chairman of the Naira-crude sale implementation committee, confirmed this new development. “Marketers can now purchase PMS directly from refineries under mutually agreed terms, promoting competition and improving market efficiency,” he said.
Speaking on the development, IPMAN’s National Publicity Secretary, Chinedu Ukadike, expressed optimism about establishing a business relationship with Dangote. During an interview on Arise TV, Ukadike noted that IPMAN had upgraded its storage facilities by acquiring tank farms, thus addressing previous operational challenges. “We are ready to offtake whatever Dangote offers. Hopefully, after our meeting on Tuesday or Wednesday, we will get a pricing template,” Ukadike stated.
The President of PETROAN, Billy Gillis-Harry, also shared that his association had resubmitted its request for lifting petrol from the Dangote refinery. “We’ve been in communication with Dangote officials, and we’re hopeful that PETROAN members will soon start receiving supplies from the refinery, which is excellent news for us,” he said.
There is also hope that petrol prices might reduce in the coming weeks. Gillis-Harry added, “Depending on market conditions, petrol prices could drop to around N700/litre. The market’s volatility doesn’t always lead to price increases—it can also result in lower prices when supply is abundant.”
Ukadike further revealed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had granted independent marketers a bulk purchase license, allowing them to offtake directly from the Dangote refinery. This marks another step in Nigeria’s deregulation process, fostering a healthier competitive environment among fuel marketers.
IPMAN is also pushing for government support in financing, calling for the creation of an energy bank to help marketers handle high interest rates that drive up costs. “We need better financial solutions as the cost of buying a single truckload of petrol has risen significantly, putting pressure on independent marketers,” Ukadike noted.
As the meeting between Dangote and the marketers draws near, it could signal significant changes in Nigeria’s downstream oil market, potentially leading to reduced petrol prices and more stable fuel supplies across the country.
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